Question

while average income is useful for comparision,but it may hide disparties.elucidate​

Answer 1

Answer:

Average income-

The total income of the country divided by its population is called Average Income.

It is a fairer comparative factor than that of the national income but it hides disparities as-

1. Different people earn different income in a society.

2. Some earn way more than the need and some earn way less than they require. But average income hides this and shows the average condition.

Eg- India is low income country. But it can be said rich country of poor people. It is because the top 40 houses of country have contributed 40 percent of GDP, and rest 130 crore have contributed to 60%. It's just an example to understand.